Finance guru cites £166m ‘Kylian Mbappe’ deal as Newcastle FFP plan revealed
Newcastle United should look at Kylian Mbappe’s move to Paris Saint-Germain to see how loans can be used to circumvent financial fair play.
That is the view of finance expert Doctor Dan Plumley, speaking exclusively to Football Insider about the Mapgies’ recruitment plans for the summer.
The £305million takeover by a Saudi Public Investment Fund-led consortium back in October made Newcastle the richest club in the world.
But the Premier League’s FFP rules, which limit clubs to combined losses of £105m over three seasons, prevent them from spending freely.
PIF backed Eddie Howe to the tune of nearly £90m in the January window.
And iNews reported last Thursday (21 April) that Newcastle will now make use of the loan market this summer to stay within FFP parameters.
French World Cup winner Kylian Mbappe, 23, joined PSG from AS Monaco on a £165.7m loan-to-buy deal in August 2017.
Plumley claims that, although loan-to-buy deals are “not entirely risk-free”, Newcastle should look to the Mgappe example for inspiration.
“Whether it’s a smart move or not depends on the results,” he told Football Insider‘s Adam Williams.
“You look at the Mbappe move to PSG which was initially a loan. I think most people would argue that was a smart move.
“If they bring in two or three players in this way and they fire them to greater success, great. But it’s not entirely risk-free.
“In terms of regulation, there isn’t much that can be done to stop them from doing this.
“There are already loan caps in terms of the number of players you can bring. Clubs will always look to work around the edges of the regulations.
“It’s tricky to regulate loans because it’s difficult to prove intentions with these sorts of deals.”
Newcastle are currently 9th in the Premier League after four straight wins.
Howe’s side are next in action against title chasers Liverpool on Saturday (30 April).
In other news, pundit suggests Chris Wood could be binned for “big-money” arrival after Newcastle United development